Announcement

Collapse
No announcement yet.

Reliance plans 25-ship fleet for Rs 5,000 cr

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Reliance plans 25-ship fleet for Rs 5,000 cr

    Transport vessels needed to cart higher Jamnagar output.

    Reliance Industries Ltd is planning to acquire 25 ships— a combination of chemical tankers, crude carriers, gas carriers and product tankers—at an estimated investment of over Rs 5,000 crore.

    The country's largest private sector company needs to acquire these ships to support the proposed doubling of its petroleum refining capacity at the Jamnagar complex from 30 million tonnes to 60 million tonnes, sources in the company said.

    The sources pointed out that the exact quantum of investment would depend on the combination of the required vessels. For example, the investment will be much higher if Reliance Industries decides to opt for more LNG carriers. A medium-range product tanker and an LPG carrier costs over $40 million each.

    In contrast, the price of an LNG carrier is over $200 million while a very large crude carrier (VLCC) costs around $125 million. Among other vessels, an Aframax carrier costs $60 million while a chemical tanker costs over $30 million.

    “The company now carries out transshipment operations in the open sea from other vessels. With the capacity addition, especially at the Jamnagar plant, it becomes logical and ideal for us to go for our own fleet,” Reliance Industries sources said. The company now has mostly small carriers like tugs, barges and offshore vessels.

    The sources said the company was exploring all possibilities, including acquisition of old vessels. However, nothing has been finalised. Owning a fleet of well-diversified carriers would help the company to manage its transportation costs better, they said.

    According to sources, Reliance Industries will have to acquire a shipping company if it wants to expand its fleet immediately as buying new ships will take a couple of years. The order books of shipyards across the globe are full till 2008.

    Reliance Industries is doubling the petroleum refining capacity at Jamnagar to 60 million tonnes per year with an investment of Rs 25,000 crore. The new capacity will primarily cater to the export markets. The capacity expansion will be completed by the second half of 2008-09.

    A new plant to manufacture polypropylene at Jamnagar is also being set up with a capacity of 280,000 tonnes. The company also plans to set up a purified terephthalic acid plant at Hazira with a capacity of 630,000 tonnes scheduled for completion next year.
    Wild Wild Web sigpic

  • #2
    I used to date someone in that family. Talk about bad move on my part. :(

    Comment

    Working...
    X